Nov 23, 2009

Ringgit Malaysia seen strengthening against dollar

ringgit-malaysia-bursa The ringgit is expected to strengthen against the US dollar this week amid an anticipated weaker greenback, dealers said.

A dealer said the risk appetite would step up this week due to market concerns over impending capital control imposition in the region, which were beginning to pressure other Asian currencies.

"The concern will act as a mitigating factor next week with trading expected to be thin. The Thanksgiving holiday in United States next week is also expected to see reduced trading volume," a dealer yesterday.

Another dealer expects the local unit to move within a wide range of between 3.35 and 3.37 throughout this week.

Last week the local unit closed easier as talks of impending capital controls emeging out of Indonesia and Brazil pressured heavily on the foreign exchange market.
 
Earlier last week, the ringgit drew support from heavy buying by corporates and exporters while the re-listing of Maxis Bhd on Bursa Malaysia lent further support to the ringgit.

The ringgit traded between 3.3570 and 3.3900 against the greenback throughout last week, before closing lower at 3.3840/3870 against 3.3740/3770 last Friday.

The ringgit also depreciated against the Singapore dollar at 2.4384/4430 last Friday from 2.4308/4356 the previous week while against the yen, the ringgit was lower at 3.8065/8103 3.7648/7709 previously.

The ringgit appreciated against the British pound to 5.6141/6204 last Friday from 5.6275/6335 the previous Friday but fell against the Euro to 5.0405/0460 last Friday from 5.0252/0311 previously. -- Bernama